📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under NPS, what is the maximum allocation that can be

    made for Equity in Tier II account?  
    A 50% Correct Answer Incorrect Answer
    B 60% Correct Answer Incorrect Answer
    C 75% Correct Answer Incorrect Answer
    D 90% Correct Answer Incorrect Answer
    E 100% Correct Answer Incorrect Answer

    Solution

    There are four asset classes from which the allocation is to be specified under a single PFM  

    1. 1.Asset Class E – Equity and related instruments  
    1. 2.Asset Class C – Corporate debt and related instruments  
    1. 3.Asset Class G – Government Bonds and related instruments  
    1. 4.Asset Class A - Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc  
    While choosing the asset class, subscribers must note that  
    1. 1.Percentage contribution value cannot exceed 5% for Alternative Investment Funds  
    1. 2.The total allocation across E, C, G and A asset classes must be equal to 100%.  
    1. 3.For Tier-II, you can allocate 100% to Equity.  
    1. 4.For Tier-I, you can allocate 75% to Equity.

    Practice Next
    More Current Financial Awareness Questions
    ask-question